Luna Berihu

Addis Ababa University
College of Business and Economics

Department of Management
Effect of Working Conditions on Employee Performance in Ayka Addis

Textile and Investment Group PLC
By
Luna Berihu
Advisor
Ato Teshome Bekele
A Thesis submitted to the school of graduate studies of Addis Ababa

University in partial fulfillment of the requirements for the
Master of Business Administration (MBA) degree
June, 2017
Addis Ababa, Ethiopia

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Declaration
I, the undersigned, declare that this study entitled “Effect of Working Conditions on Employee
Performance in Ayka Addis Textile and Investment Group PLC” is my own work. I have
undertaken the research work independently with the guidance and support of the research
advisor. This study has not been submitted for any degree or postgraduate program in this or any
other institutions and that all sources of materials used for the thesis have been duly
acknowledged.
Declared by:
Name: Luna Berihu
Signature: _____________
Date: June 2017
Place: Addis Ababa, Ethiopia
Advisor: Ato Teshome Bekele

Signature: ______________
Date: __________________
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Certification of Originality and Quality
School of Graduate Studies
This is to certify that the thesis prepared by Luna Berihu, entitled: “Effect of Working Conditions
on Employee Performance in Ayka Addis Textile and Investment Group PLC”; and submitted in
partial fulfillment of the requirements for the Degree of Master of Business Administration in
Management complies with the regulations of the University and meets the accepted standards
with respect to originality and quality.
Signed by the Examining Committee:

Internal Examiner _____________________ Signature _________ Date _________
External Examiner _____________________ Signature _________ Date _________
Advisor _____________________ Signature _________ Date _________
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Table of Contents
Acknowledgments………………………………………………………………………….7
Abstract……………………………………………………………………………………..8
List of Tables and Figure…………………………………………………………………….9
Lists of Acronyms……………………………………………………………………………10
Chapter One: Introduction
1.1 Background of the Study…………………………………………………………………… 11
1.2 Statement of the Problem…………………………………………………………………… 12
1.3 Research Objective…………………………………………………………………………. 13
1.4 Research Hypothesis……………………………………………………………………….. 13
1.5 Significance of the Study…………………………………………………………………… 14
1.6 Scope of the Study………………………………………………………………………….. 14
1.7 Limitation of Study…………………………………………………………………………..14
1.8 Organization of the Study………………………………………………………………… 15
Chapter Two: Review of Literature
2.1 Introduction ……………………………………………………………………………….…16
2.2 Working Condition…………………………………………………………….…….…… 16
2.2.1 Concept of Working Conditions…………………………………………………………16
2.2.2 Operational Definitions of Working Condition………………………………………….17
2.2.3 Factors of Working Conditions………………………………………………………….…17
2.2.3.1 Occupational Health and Safety……………………………………………………….…18
2.2.3.2 Working Time………………………………………………………………………….19
2.2.3.3 Wage and Income……………………………………………………………………...19
2.2.3.4 Work Organization……………………………………………………………………....20
2.2.3.5 Welfare Facilities………………………………………………………………………..21
2.2.3.6 Work Load……………………………………………………………………………… 22
2.2.3.7 Work Life Balance…………………………………………………………………...….22
2.2.3.8 Violence, Harassment and Discrimination……………………………………………22
2.2.3.9 Training……………………………………………………………………………….23
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2.2.3.10 Association and Collective Bargaining……………………………………………23
2.3 Employee Performance…………………………………………………………………24
2.3.1. Measuring Employee Performance………………………………………………….24
2.4. Empirical Review……………………………………………………………………...25
2.5. Conceptual Framework………………………………………………………………..27
Chapter Three Research Methodology
3.1 Introduction……………………………………………………………………………29
3.2 Research Design……………………………………………………………………….29
3.3 Research Approach…………………………………………………………………….30
3.4 Population, Sample Size and Sampling Technique…………………………………….30
3.5 Unit of Analysis, Time Dimension and Study Setting…………………………………31
3.6 Data Source and Collection Instrument………………………………………………..31
3.6.1 Questionnaire…………………………………………………………………………31
3.7 Reliability and Validity ………………………………………………………………..32
3.7.1 Reliability Test………………………………………………………………………..32
3.7.2 Validity………………………………………………………………………………..32
3.8 Operationalization of Variables…………………………………………………………33
3.9 Method of Data Analysis……………………………………………………………… 34
3.9.1 Descriptive Statistics………………………………………………………………........34
3.9.2 Inferential Statistics…………………………………………………………………......34
3.9.2.1 Pearson’s Correlation Coefficient……………………………………………………35
3.9.2.2 Multiple Regressions………………………………………………………………….35
3.10 Ethical Consideration……………………………………………………………………37
Chapter Four Data Presentation, Analysis, and Interpretation
4.1 Introduction…………………………………………………………………………….. 38
4.2 Background of Employees……………………………………………………………… 38
4.3 Measures of Central tendency and Dispersion………………………………………….. 39
4.4 Pearson’s Product Moment Correlation Coefficient……………………………………..40
4.5 Anova Test………………………………………………………………………………. 43
4.6 Multiple Regressions……………………………………………………………………. 44
4.7 Hypothesis Summary……………………………………………………………………..46
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Chapter Five Summary, Conclusion, and Recommendation
5.1 Summary…………………………………………………………………………………...49
5.2 Conclusion……………………………………………………………………………….. 49
5.3 Recommendation………………………………………………………………………… 50
5.4 Direction for Further studies………………………………………………………………..52
References………………………………………………………………………………………53
Appendix
Questionnaire in English……………………………………………………………………..58
Questionnaire in Amharic…………………………………………………………………….62
SPSS Correlation Output……………………………………………………………………65
SPSS Multiple Regressions Output…………………………………………………………..66
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Acknowledgements
In completing this study, I would like to give my foremost gratitude and
thankfulness to Almighty God in helping me get through this journey from start to
end. I next would like to thank my advisor Ato Teshome Bekele, for his unreserved
assistance, insights, and advice. It is with deep gratitude and compassion that I
thank my parents and brothers for their moral support, advice and love.
I would like to thank Ato Amare, Ato Belay, Ato Shime, and all the employees of
Ayka Addis Textile and Investment Group PLC for their support and response in
collecting the required data.
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Abstract
This research aims to investigate factors affecting the performance of employees in Ayka Addis
Textile and Investment Group PLC with a special emphasizes on operational workers, which are
involved in the direct production of the organizations output. For the sake of achieving the
objectives of this study, questionnaires were analyzed using statistical analysis such as
descriptive and inferential analyses. The information was gathered through questionnaire from a
sample of 343 operators. The respondent employees were selected using simple random
sampling technique. The empirical study drew ten variables that could pose effect on the
performance of the employees, namely occupational health and safety, working time, wage and
income, welfare facilities, work organization, work load, work life balance, violence, harassment
and discrimination; training, and association and collective bargaining. The findings further
indicate that, there exists a significant relation with in a moderate level between independent
variables and dependent variable. Based on findings, recommendations to the owners, managers
and supervisors were suggested. Furthermore, directions for further research in the field are
suggested.
Key Words: Working Condition, Employee Performance, Productivity, Work Environment
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List of Tables and Figures
Figure 2.1 Conceptual Framework…………………………………………………………… 19
Table 3.1 Reliability Test for questionnaire segments ………………………………….……. 22
Table 3.2 Operationalization of Independent Variables ……………………………………… 23
Table 3.3 Variables in regression function………………………..……………………….….. 25
Table 4.4 Background of employees …………………………..……………………………… 28
Table 4.5 Overall Mean and Standard Deviation ……………………………………………… 29
Table 4.6 Pearson’s Correlation Coefficient ………………………………………………….... 31
Table 4.7 Anova Test ……………….………………………………………………………….. 33
Table 4.8 Multiple Regression …………………………………………………………….…… 34
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Acronyms
ADLI- Agricultural Development Led Industrialization
AFL-CIO- American Federation of Labor and Congress of Industrial Organizations
HSE- Health and Safety Executive
ILO- International Labor Organization
MN- Mean
MoI- Ministry of Industry
SD- Standard Deviation
SPSS- Statistical Package for the Social Sciences
TCLF-Textile, Clothing, Leather and Footwear
WDR- World Development Report
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Chapter One
Introduction
1.1 Background of the Study
In any workplace, one of the important issues pertaining in the employees of an organization is
the environment and conditions employees have to work with. The employment relationship is
characterized by the mutual actions of the employee and the employer. Better conditions of work
such as safe conditions of work, adequate remuneration, and balance of family work life, show a
good perception by the employees. By having these circumstances, working conditions play an
important role in work force performance (Swathi, 2013). If bad perceptions of work conditions
pertain with in employees work premises, unforeseen stress results regarding their work arise
from employees, which further translate to poor motivation and performance (Bhaga, 2010).
Convenient workplace conditions are requirements for improving productivity and quality of
outcomes. Working conditions in many organizations may present lack of safety, health and
comfort issues such as improper lighting and ventilation, excessive noise and emergency excess.
People working under such inconvenient conditions may end up with low performance and face
occupational health diseases causing high absenteeism and turnover. There are many
organizations in which employees encounter problems with working conditions related to
environmental and physical factors (Leblebici 2012).
The Ethiopian government is renowned for drafting “Agricultural Development- Led

Industrialization” (ADLI) as its principal strategy and has defined the textile and garment sector
as a top priority sector in the industrial development package of the country. This is because
textile and clothing market is always demanded next to food commodities. The sector also
utilizes more labor which is available abundantly at low cost in the country. The garment sector
has a large potential for creating employment opportunities. The sector has a vast potential to
manufacture goods for export, thus earning highly demanded foreign exchange (Chavary, 2010).
In efforts to create and sustain the building of the industry platform to take its key leading role in
the economy, recent policies were designed to achieve the aforementioned objectives.
Underlying these policies is the focus on labor intensive industries, (MoI 2013).
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It is with these circumstances that the researcher wanted to understand the issue of working
condition these labor intensive industries work under and in return its effect on employees’
performance.
1.2 Statement of the Problem
In a country where production and service is driven by labor, giving due attention will be a better
insight to the factors of working conditions that hamper or prosper performance, thus in order to
bring industrial growth that can be sustained being among the main keys to the road of
development ahead. In having such an outlook having awareness in factors of working
conditions pertaining to production work premises that affect employees’ performance in
production oriented organizations is deemed important.
As stated by Noble (2009), more attention should be paid in identifying and dealing with
working conditions. This is so because when employees have negative perception to the existing
conditions they may suffer from lasting strain with their work. Moreover, many executives are
under the mistaken impression that the level of employee performance on the job is proportional
to the size of the employee’s compensation package. This common belief among apparel factory
managers reported in case study analysis is that workers value money wages above workplace
amenities. This belief indicates that manager perceptions do not reflect underlying worker values
but rather a failure to effectively implement workplace innovations (WDR, 2013). Even though
compensation package is one of the extrinsic motivation tools (Ryan and Deci, 2000), it has a
limited short term effect on employees’ performance. When shifting the case to Ethiopia, a report
on the current working conditions for the textile and garment industries state that conditions of
work like wages being low and unions still needing more attention from concerned entities are
issues pertaining. The report states that Ethiopia envisions being a middle income earning
country by 2025. In line with this, suggestions were made by trade unions and some business
owners that the wage and other accompanying working conditions be sensible enough in the
workplaces. Managers in the sector also suggest that these issues be handled early, before the
industry doesn’t get disturbed later on like those witnessed in the experiences of Far East Asia
(Foltyn, 2014).
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Therefore, the researcher aims at creating an understanding in showing the effect of working
conditions that management should see in the broader aspect and conditions that pertain to the
realm of their employees.
1.3 Research Objective
The general objective of this paper is to examine the effect of working conditions (occupational
health and safety; work time, wage and income; work organization, welfare services, work load,
work life balance, training, violence and sexual harassment; and association and bargaining
power) on employee performance in Ayka Addis Textile and Investment Group PLC. Therefore,
in order to get an inquiry on the effect of working conditions on employee performance the
following specific objectives were developed to be examined on the course of the study.
 To identify the relationship existing between working condition and employee

performance.
 To identify the influence working conditions have on employee performance.
1.4 Hypothesis
H1: Occupational health and safety has a significant and positive relationship with employee
performance in Ayka Addis Textile and Investment Group PLC.
H2: Working time has a significant and positive relationship with employee performance in Ayka
Addis Textile and Investment Group PLC.
H3: Wage/Salary has a significant and positive relationship with employee performance in Ayka
H4: Work Organization has a significant and positive relationship with employee performance in
Ayka Addis Textile and Investment Group PLC.
H5: Welfare Service has a significant and positive relationship with employee performance in
H6: Work Load has a significant and negative relationship with employee performance in Ayka
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H7: Work life balance has a significant and positive relationship with employee performance in
H8: Violence, harassment and discrimination has a significant and negative relationship with
employee performance in Ayka Addis Textile and Investment Group PLC.
H9: Training has a significant and positive relationship with employee performance Ayka Addis
Textile and Investment Group PLC.
H10: Association and collective bargaining has a significant and positive relationship with
employee performance in Ayka Addis Textile and Investment Group PLC.
1.5 Significance of the study
Having this study completed, the researcher wants the study to help managers and owners of the
production oriented business under study to get a perspective of what their working conditions
embrace and where they stand at in such issues. Getting insight of their working conditions and
its effect on the outcomes of performance by their employees will make the aforementioned
stakeholders understand role of working conditions in overall performance. Furthermore, the
researcher wants the study to be a wakeup call to other textile and garment producing enterprises
in their perception and providence of working conditions; whilst being a paving road for
improvement.
1.6 Scope of the Study
The scope of the study goes through working conditions of a textile and garment manufacturing
organization that employs labor as its primary means of production process, i.e. Ayka Addis
Textile and Investment Group PLC. Data and information of working conditions were collected
from Ayka Addis Textile and Investment Group PLC.
1.7 Limitation of Study
With the limited time and resources, the study was confined only to one textile and garment
factory, i.e. Ayka Addis textile and Investment Group PLC. As the study is intended to get an in
depth investigation of the problem in a single industry, the result cannot be recommended to
other industry with different situations.
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1.8 Organization of the Paper
The paper is organized in to five chapters. Chapter one contains introduction, statement of the
problem, objectives of the study, research hypotheses and questions, significance, scope and
limitations of the study. Chapter two describes different literatures that were reviewed. The
research design including the methodology adopted, analysis techniques and the model that were
applied in data collection and analysis are presented in chapter three. The fourth chapter outlines
data presentation, analysis and interpretations; and the fifth chapter deals with summary,
conclusion and suggested recommendations.
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Chapter Two
Review of Related Literature
2.1 Introduction
In reviewing the available literature, the structure followed for the study is first putting forward
the introduction to the study, where by definitions, concepts, factors of influence and theories
that are associated with the study are presented. The following segment is the empirical
background, where relevant studies in regard to working condition and employee performance
are discussed and reviewed. Finally, the conceptual framework that will assist in visualizing the
dependent and independent variables the course of the study is presented.
2.2 Working Condition
2.2.1 Concept of Working Condition
The conditions under which a job is performed can be different from those completely
comfortable to those very difficult and dangerous to employees’ life and health (Bakotić and
Babić, 2013). Bhawsar et.al (2014) state that the workplace environment is the most critical
factor in keeping an employee satisfied in today’s business world. Today’s workplace is
different, diverse, and constantly changing. The typical employer/employee relationship of the
old days is not similar to that of todays. Workers are living in a growing economy and have more
job opportunities. This combination of factors has created an environment where the business
needs its employees more than the employees need the business (Bhawsar, 2014).
Working Conditions play key role between the employees and employers. Since the scenario of
the employment is changing due to pressure of globalization there are so many job opportunities
available for employees. The success of any organization depends on its employees. If
employees are taken good care of; performance, efficiency and productivity levels are likely to
increase. This concept makes working condition a critical success factor for accepting and/or
keeping the jobs offered and therefore organizations must take appropriate steps for providing
better working conditions (Bhawsar, 2014).
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2.2.2 Operational Definitions of Work Conditions
The term working/employment conditions refers to a range of technical subject areas that women
and men face in the workplace, related to their work and to the balance between their work life
and their family (Rinehart, 2004).Working condition means the working environment, those
aspects of an employee’s working and its terms and conditions during employment. This
includes all the things such as: the organization of work; health, safety and wellbeing; working
time and work-life balance (Eurofound, 2011). Perhaps the most used definition to the term of
working condition is the one by Gerber et al.,(1998) , who defines it as a phenomenon created
by the interaction of employees with their organizational climate and this includes psychological
and physical working conditions ( Nwonu,2014; Ssekajugo,2013; Bhaga,2010). Working
conditions include workforce issues and workplace issues. Generally, they encompass a range of
issues from work itself to sanitary facilities and other conveniences that aid employees in the
discharge of their responsibilities.
Working conditions are the result of the interaction between a job, the work, the company and an
individual (Gollac, 2004). Clerc (1985) identifies the term work condition as the constituent of
aspects covering occupational safety and health (OHS), working time, work organization and job
content, income and wage, and welfare services. These features are common facets to the
existence of working condition in an array of organizations. Additional aspects or factors to the
earlier mentioned factors from previous studies include: workload (Ali et al., 2013), training,
issue of freedom of association and collective bargaining (Robertson et. al, 2016), work- life
balance (Eurofound, 2012), violence and harassment in workplace (Robertson et.al, 2016; Bhaga,
2010).
2.2.3 Factors of Work Conditions
Factors of working conditions differ and vary over many organizations. However the common
factors and determinants of working conditions that are presumably attributed to an organization
and aspects of the study are occupational safety and health (OHS); working time; work
organization; income and wage; welfare services; workload; training; association and collective
bargaining; violence, discrimination, and sexual harassment; work-life balance in workplace .
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2.2.3.1 Occupational Health and Safety (OHS)
Occupational health and safety (OHS) is attributed to safe and healthy physical work
environment where occupational health and safety hazards (for example, chemical,
musculoskeletal, electrical and machine hazards) are recognized, assessed and controlled
(Burton, 2008). Furthermore, the HSE regulation guide (2008) puts forward that measures of
health include features of the general working environment such as ventilation, cleanliness and
waste of materials; room/work space dimensions, and workstations and seating facilities be
appropriate and satisfactory to work with. On the same context, safety issues pertain to
maintenance, floor routes, falls into dangerous substances, transparent or translucent doors,
gates, walls and windows; doors, and windows.
According to Oxenburgh et al. (2004), the health and safety of all employees is closely linked to
the company’s productivity in all workplaces. With a global focus on the need for productive
employment, it is necessary to examine the contribution that good conditions of OSH and
working conditions generally make towards reaching such a goal. Providing safe and healthy
working conditions actually makes enterprises more productive, as opposed to recurrent
occupational accidents that make it bad for productivity.
The major health and safety concerns in the apparel industry are related to general conditions of
work environment. The work in the apparel units requires prolonged hours of standing or sitting
in forward bending posture. The work in there units are highly repetitive in nature, requiring a
combination of both state and rhythmic muscular activity. When such tasks are repeated several
times in a day, this leads to disorders. Empirical evidence state that the workers in the apparel
units suffer from work related musculoskeletal disorders, particularly of neck, back and upper
extremities are the most frequently reported work related health problems among garment
workers (Zohir and Majumder, 1996).
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2.2.3.2 Working Time
Working time is noted to be one of the main aspects that impact lives of employees and the
competitiveness of firms (ILO, 2014). Working hour or time is identified as the period in a day
or in a week when the employee regularly renders service to the benefit of his/her employer
(Redae, 2009). According to ILO’s Convention 1 and 30, the regular working hours the average
employee should maintain is 8 hours of work per day and 48 hours of work per week (ILO,
2011). Overtime work is a constituent of work hours which is identified as the excess time of
work done in addition to the regular daily hours of work. These excess of hours are not to
surpass 2 hours in a day and should be well compensated of. According to the 2003 Labor
Proclamation, workers are supposed to get weekly rest days, but employers can circumvent that
restriction if there is immediate work to be done (Federal Negarit Gazeta, 2004).
It has been an evident issue of concern that in developing TCLF producer countries, of which
Ethiopia is a member country, major problems persist in relation to excessive working hours and
the provision of adequate rest and recuperation periods, including weekly rest and paid annual
leave (ILO, 2014). In addition to this, overtime also plays a role when cloth producing factories
want to keep up with their demands, lead times, and their competition. These overtimes may
translate to the employees as a means of earning income to sustain themselves and their families
in addition to the basic salary they earn (ILO, 2014). Ali (2013) affirms in his analysis that work
hours have positive correlation with employees performance and that it is certainly a factor of
working condition that affects employees performance.
2.2.3.3 Wages and Income
Wage can be identified as a monetary compensation (or remuneration, personnel expenses) paid
by an employer to an employee in exchange for work done. Payment by wage contrasts with
salaried work, in which the employer pays an arranged amount at steady intervals (such as a
week or month) regardless of hours worked. In the context of Ethiopia, Redae (2009) underpins
that the wage can be made in the mode of payment in cash or in kind; though ordinarily payment
is effected through cash. As regards to the interval of payment, it could be according to time
periods such as daily, weekly, bi-monthly, monthly basis or it could be assessed on piece
rate(payment calculated as a fixed amount for each task completed.
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The fact that labor productivity and real wages of workers have certain economic linkage that
influences labor market performance has been the interest of scholars , policy makers and labor
unions (Islam et. al, 2015). According to Alfred Marshall’s efficiency theory, wages have to be
set a certain level to influence productivity. The theory argues that low wages have negative
effects and that worker’s productivity positively depends on their wages. It follows to elaborate
that these efficiency wages are paid to avoid shirking levels of employees, lower turnover costs,
and attract higher quality of labor force: improve employees’ morale; facilitate team work;
generate feeling of loyalty by employees to the firm; and bring industrial harmony (Katz, 1986).
Robertson et al. (2016) also adheres to this concept of Alfred Marshall’s efficiency theory by
pointing out that factory managers can elicit work effort directed at quality and quantity by
paying an efficiency wage or by altering the conditions of work (Robertson et.al,2016).
Sule et al, (2015) express that wages and salaries must maintain equity, competitiveness,
matching employee expectations, reinforcing positive employee behavior and eliminating any
discrepancies. Their work also adds that wage is good and adequate when it is one that is
competitive with in the industry, internal alignment of salary and pay that recognizes employees’
performance.
2.2.3.4 Work Organization
Valeyre, (2009) identifies work organization as a concept that refers to the choices made within
organizations on issues such as the structure of the production process, the relationship between
staff and production departments, the responsibilities at different hierarchical levels and the
design of individual jobs. This broad concept being at organizational level, when related to the
individual circumstances it translates as the control of work and the division of labor. It includes
the tasks performed, who performs them and how they are performed in the process of making a
product or providing a service. It’s aspects include pace of work (speed of an assembly line,
quotas), work load, number of people performing a job (staffing levels), hours and days on the
job, length and number of rest breaks and days away from work, layout of the work, skill mix of
those workers on the job, assignment of tasks and responsibilities, and training for the tasks
being performed (AFL-CIO, 2006). When employers make efforts in improvements to the
organization of work employees carry out, the performance likewise will improve (CIPD, 2008).
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2.2.3.5 Welfare Services
Welfare is a corporate attitude or commitment reflected in the expressed care for employees at
all levels, underpinning their work and the environment in which it is performed (Cowling and
Mailer, 1992). The concept of „employee welfare‟ is flexible and differs widely with times,
regions, industry, country, social values and customs, the degree of industrialization, the general
social economic development of people and political ideologies prevailing at particular moments
(Rao et al,2015). According to the HSE regulation guide , the main attributes of welfare that
need to prevail in the work premises are sanitary conveniences and washing facilities, drinking
water, accommodation for clothing and facilities for changing and facilities for rest and to eat
meals. The provision of appropriate workplace amenities and facilities is important for the basic
health, safety and welfare of employees. With this research, the researcher understands welfare
facilities as amenities and facilities provided by the employer as things provided for the welfare
existence of their employee in workplace.
Nwonu, (2014) affirms that ensuring adequate facilities are provided to employees is critical to
generating greater employee commitment and productivity. The provision of inadequate
equipment and adverse working conditions has been shown to affect employee commitment and
intention to stay with the organization (Weiss, 1999).
Patro (2012) identified that the employees are assets of any organization and the needs of the
employee must be satisfied in order to meet the goals of the organization. Any organization
would be effective only when there is high degree of co-operation between the employees and
their management. This cooperation is assumed to be working when employers are true to the
welfare provision of their employees.
2.2.3.6 Work Load
Workload in a work environment is described as where tasks and responsibilities taken on can be
accomplished successfully within the time available. Didomenico and Nassbaum, (2008) state
that workload is determined by the relationship between task demands, the circumstances under
which that task takes place and the perceptions, actions, skills and knowledge of the individual
performing the task. The task demands may include physical actions, cognitive tasks and/or a
variety of other factors. Hart & Staveland (1988) the expenditure incurred by a person, given
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their capacities (resources), while achieving a particular level of performance on a particular task
with certain demands. These definitions imply that workload is the attribute of work that can be
identified as the personal set of skills employees have and how they execute task demands
within the given time,
Ali et.al (2013) affirms in his analysis that work load is negatively related with employee
performance. The results showed that a unit increase in workload showed a down fall of
productivity in employees.
2.2.3.7 Work life balance
The way people combine work with their private life depends very much on their personal
circumstances, including their family situation. To work or not, how many hours someone is
available to work, and when or how flexible they can be are often decided during discussions at
home, in the sense that these issues depend on the household situation. The requirements for
work–life balance also differ over the course of a person’s lifetime. In all this, employers play an
important role in the sense that they may facilitate certain working time arrangements, facilitate
support in balance of work time and personal time or make more flexibility from workers in
order to suit the company’s needs. Also, allowing the workers to take time off during working
hours at short notice for private reasons has a strong positive effect on the perception towards
working conditions and to their work performance (EuroFound,2012)
2.2.3.8 Harassment, Violence, and Discrimination at workplace
The Canadian Centre for Occupational Health and Safety (2005) defines workplace violence as
any act in which a person is mistreated, threatened, frightened or battered in his or her
employment. Bowie (2005) states that workplace violence is a perceived or actual verbal abuse,
emotional threat, physical attack or misuse of power upon an individual’s person, or against a
workgroup or organization by another individual, group or organization while undertaking work
related duties. It takes many forms, including verbal abuse, physical abuse and sexual harassment
which result in psychological trauma which in turn may affect an individual or groups of
employees as well as the workplace itself. Furthermore, Bhaga (2010) assert that people who are
exposed to violence on a regular basis will experience stress and this will have a negative impact
on their performance.
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2.2.3.9 Training
Weil and Woodall (2005) identify the essential definition of the term as being HRM’s action to
close the gap between current performance and future expected performance. Nassazi (2013)
remarks that employee training has an important role in the improvement and increasing
productivity. Matching workers’ skills with labor market needs is challenging. If not adequately
addressed, a mismatch between skills and duties (created, for instance, by not providing further
training or more challenging tasks) may become a source of dissatisfaction and reduced well-
being among workers (Eurofound,2012). Training and development begins with orientation of
new employees and continues throughout the employees’ stay with the organization (Bhaga,
2010). In Ethiopia, a concern for a range of manufacturing organizations is the set of skills
employees have. Analysis by the WB states that skill shortage is abundant in the sector and that
it stands as a hindrance to the performance of the organizations. It further adds that the skills
required by the organizations are more with work ethic and commitment, rather than technical
capabilities. This is so because assembly line production requires discipline, timeliness, and team
coordination. Therefore, training is linked positively with employee performance
2.2.3.10 Association and collective bargaining
Freedom of association implies a respect for the right of all employers and all workers to freely
and voluntarily establish and join groups for the promotion and defense of their occupational
interests. Workers and employers have the right to set up, join and run their own organizations
without interference from the State or any another entity. Employers should not interfere in
workers’ decision to associate, try to influence their decision in any way, or discriminate against
either those workers who choose to associate or those who act as their representatives.
Additionally, collective bargaining is a constructive forum for addressing working conditions
and terms of employment and relations between employers and workers, or their respective
organizations. It is often more effective and more flexible than state regulation. It can help in
anticipating potential problems and can advance peaceful mechanisms for dealing with them; and
in finding solutions that take into account the priorities and needs of both employers and
workers. Sound collective bargaining benefits both management and workers, and promotes
peace and stability which benefits society more generally (ILO, 2008). In a very recent report
made by the ministry of association discovered that the availability and accessibility of freedom
23
of association and bargaining in the manufacturing industry increases performance than those
that didn’t have the issue present in their workplace.
2.3 Employee Performance
It should be noted that there exists a difference between performance and productivity. The term
productivity refers to the fraction of input to output, which thus makes it narrower in its content
than performance. Furthermore, distinctions should be made between the causal variables and the
indicators of work performance. Causal variables elicit the level of performance of an employee.
For instance, a causal variable for performance could be job satisfaction. On the contrary,
indicators of performance describe how well task is carried out. An example indicator of
performance could be work quality. Within this research the term employee performance was
addressed in accordance to work performance indicators.
Borman (2004), states that employees’ performance is the most important dependent variables in
an industrial and organizational psychology. Even though the basic definition of the term infers
to job related activities expected of a worker and how well those activities were executed,
employee performance stands for employee behavior and performance at work.
2.3.1 Measuring Employee Performance
Measuring performance is relatively easy for those who are responsible for achieving quantified
targets, like output per hour. Difficulty arises when we desire to measure the conceptions of
performance in employees. But this difficulty is alleviated if a distinction is made between the
two forms of results, i.e. outputs and outcomes. An output is a result that can be measured
quantifiably, while an outcome is a visible effect that is the result of effort but cannot necessarily
be measured in quantified terms (Armstrong, 2009).
There are components in all jobs that are difficult to measure quantifiably as outputs, but all jobs
produce outcomes even if they are not quantified. It is therefore often necessary to measure
performance by reference to what outcomes have been attained in comparison with what
outcomes were expected, and the outcomes may be expressed in qualitative terms as a standard
or level of competency to be attained (Armstrong, 2009). Therefore a qualitative measure of
outcome of an employee’s performance can be attributed to the definition of the aspects that
24
define the work done meets or exceeds expectations of organization, completing tasks
satisfactorily, or if operations have reached an agreed upon standard.
In measuring employee performance for this particular study, the indexes of measurement for
performance were extracted from Hakala (2009), and their descriptions are as follows:
Quantity: refers to the number of items or units produced in the work assignments of employees.
Quality: refers to producing items or units of excellence or a state of being free from defects. It
can be measured by the percentage of output of work is rejected or redone.
Timeliness: refers to the time taken to carry out a task of work or how fast work is performed.
Cost effectiveness: refers to producing good results without costing a lot of money.
Absenteeism/Tardiness: refers to the unscheduled absences from the workplace.
Creativity: refers to mental process of generating ideas or alternative options of procedures in

producing outputs at lower costs and as such to improve performance.
Adherence to Policy: refers to the extent to which employee performance goals are well aligned
with those of the company’s.
2.4 Empirical Review
In today’s era, one of the biggest concerns for any organization is to improve overall
productivity, representing the efficient and effective conversion of resources into marketable
finished products and determining business profitability (Prajapati and Bhatkar, 2015). In all this,
the key ingredient to all these functions is the performance of the employees of an organization.
Patterson et al. (1997) ascertains that people are the most valuable resource of an organization,
and that the management of people makes a difference to company performance.
The working conditions pertaining in the working environment for employees are vital for
productivity growth of the organization. Negative perception of the working conditions of
organization in employees may result in absenteeism, stress related illness, and loss of
productivity and commitment towards the organization. Organizations which have good working
conditions are said to experience greater productivity (Bhawsar et.al, 2014).This is ascertained in
25
the works of Polek-Duraj (2013), which postulates that any organization, regardless of the
differences between them (e.g. size, and management style) an employee dissatisfied with
working conditions is less efficient. Furthermore, Polek-Duraj (2013), ascertained through
analyzing national surveys that the higher the level of working conditions, the safer employees
feel at workplace, the more they identify with its objectives and tasks, and the higher the
motivation to perform professional duties. Furthermore, employees tend to become more
productive, the workload is made effective and therefore making market position of their
companies better.
In reviewing literature on working conditions and employees performance, the following studies
were assessed from studies with in Africa on the researchers study area.
A study conducted by Bhaga (2003) made an investigation on working condition and employees’
productivity and found that working conditions have both positive and negative impact on
productivity, Conducive work environment ensures the wellbeing of employees which will
always enable them in exerting themselves to their roles with all force that may translate to
higher productivity (Akinyele, 2007).
Ssekajugo (2013) in his study observed that once if work condition factors are not addressed or
don’t prevail, the end result may be stress and a noticeable slowdown in productivity, which
affects the performance of the organization. He further adds that money is not a sufficient
motivator in encouraging the superior workplace performance required in today’s competitive
business environment. Employees will need to be comfortable with working with the whole
complete range of workplace factors that influence employee motivation.
Teklehaimanot et al. (2007) have made a study on Health Extension Workers’ working
conditions in the Ethiopian context. The overall objective was to assess the working conditions
the health workers went through and their corresponding satisfaction. The scenario the workers
under the study was discussed by exploring the aspects of resources provided, work routine,
health education, finance, conditions of living of workers, administrative issues, rewards and the
community through a qualitative approach. Further studies relating the issue of working
conditions to manufacturing industries in Ethiopia were not identified by the researcher.
26
2.5 Conceptual Framework of study
Onen and Oso (2009) note that a conceptual framework is a diagrammatic presentation of a
theory and that its presented as a model when research variables and the relationship between
them are translated into a visual picture to illustrate the interconnections between the
independent, intervening and dependent variables. The conceptual framework was therefore a
scheme of concepts which the study used in order to achieve the set objective. The Independent
Variables understudy for this study are occupational health and safety; working time; wages and
income; work organization and job content; welfare services; work load;, work life balance;
sexual harassment and violence at work place; training; and freedom of association and
collective bargaining. The following figure illustrates the conceptual framework for the
independent and dependent variables.
27
WORK
ORGANIZAT
WELFARE ION WORK LOAD
FACILITIES
WAGE VIOLENCE,
AND HARASSMENT, AND
INCOME DISCRIMINATION
WORKING
TRAINING
TIME
OCCUPATIONAL ASSOCIATION AND

EMPLOYEE
HEALTH ANSD BARGAINING
PERFORMANCE
SAFETY POWER
Fig1. Conceptual model on the relationship between working condition factors and employee
performance. (Source: researchers own construct based on literature review and previous
empirical works.)
28
Chapter Three
Research Methodology
3.1 Introduction
In this chapter the practical method used in order to answer the hypothesis developed and fulfill
the purpose of the research are presented. Also, it provides an overview of the research design,
research approach, model specification, a description of the instrument used for data gathering,
targeted population, sampling procedure, and unit of analysis, sources of data used, and methods
of data analysis, presentation and interpretation.
This study was conducted on Ayka Addis Textile and Investment Group PLC, a vertically
integrated textile and garment company factory in Addis Ababa established in 2007. The
company is a subsidiary of Ayka Istanbul, which is the parent company established in 1988 as a
ready-made garment manufacturer and exporter. Ever since its establishment within Addis
Ababa, Ayka Addis has been expanding its operations in the form of launching an additional
spinning factory so as to increase production capacities. Its products are knitted and dyed fabric
for men, women, and kids. The main product types produced by the company include shirts,
tops, pants, shorts, jackets, home wear, sweatshirts, pajamas, dresses leggings, skirts, and night
dresses. Ayka Addis was chosen by the researcher as it is a manufacturing organization of textile
and garment products with several compliance standards that have been given to.
The study undertakes a quantitative approach to the developed research hypothesis of the
research. The study was designed on a cross - sectional finding for quantitative study approach
which was used to gather the necessary and required data for the study of effect of working
conditions on employee performance.
3.2 Research Design
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure
Kothari, (1990). The aim of this research is to identify the relationship between factors of
working conditions and employee performance. The research design for the study is
correlational. This is so in accordance with the objective of the research, i.e. identifying
29
relationship between the dependent and independent variables. Also, Sekaran (2003) states that
when a researcher has the intention of mere identification of the important factors associated
with the problem a correlational study are called for.
3.3 Research Approach
Quantitative method is a study involving analysis of data and information that are descriptive in
nature and qualified (Sekaran, 2003).This research applies the quantitative research approach in
the intent to achieve the objectives of the research.
3.4 Population, Sample size and Sampling Technique
For the purpose of the study, the factory that rendered the information required for the study was
Ayka Addis Textile and Investment Group PLC. From preliminary insight to the population, the
number of total operational employees is 5234. Given this as the population for the study, the
sampling frame comprised of operational workers of the organization.
The formula used to derive the sample size from the aforementioned population is the one
developed by Watson, (2001)
Source: Watson, 2001
Where:
n: sample size required- 357
N: number of people in the population-5234
P: estimated variance in population - 50%
A: precision desired – 5%
Z: Based on confidence level – 95 %( 1.96)

30
R: Estimated response rate- 98%
Therefore from the above equation results, the researcher’s sample size is 357.
These segments of the workers, operational employees, were chosen for the purpose of the study
which is effect of working conditions on employee performance. From here, simple random
sampling was done to obtain the sample for the study.
3.5 Unit of Analysis, Time Dimension and Study Setting
The units of analysis for the research undertaken were individual workers; therefore individual
worker analysis was accounted for. Since the study gathered data required at one point in time,
the time dimension for the study is cross-sectional. Sekaran (2003) mentions that when a study
takes place in the natural environment where work proceeds normally and where correlational
studies are undertaken, then non-contrived settings is the study setting called for.
3.6 Data Source and Collection Instrument
In order to obtain the necessary data, both primary and secondary sources will be made use of.
Primary data refer to information obtained first hand by the researcher on the variables of interest
for the specific purpose of the study (Sekaran, 2003). Secondary data are those collected by
others for the purpose of other works and research but are helpful to the current study as well.
Study primarily focused on primary data that was collected from the operational workers of the
selected factory.
3.6.1 Questionnaire
For this research, the questions in the questionnaire were self-administered and closed-
ended/structured questionnaire. This is as to ease the process of analyzing the data from
respondents. Thus, the results gathered from respondents will increase the speed and accuracy of
recording, as well as more comparable. Furthermore, the questions within the questionnaires
were developed from the essential concepts contained within the literature review.
Operational employees of the factory under study were asked to fill out a questionnaire survey.
This is so because the researcher believed that these employees were useful respondents for the
study instrument and the objective of the study in general. The questionnaire constituted of three
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segments in its content. The first segment included questions about demographic profiles of the
respondents i.e. age, sex, educational level and marital status. The second section included
questions that dealt about working condition issues pertaining and while the last segment
included the issues underlying employees’ performance. The five-point Likert scale was used for
representing the range of attitudes from 1 – strongly disagree to 5 – strongly agree, thus to assess
the effect of working conditions have on employee performance.
3.7 Reliability and Validity
3.7.1 Reliability Test
The reliability of a measure indicates the extent to which it is without bias (error free) and hence
ensures consistent measurement across time and across the various items in the instrument. In
other words, the reliability of a measure is an indication of the stability and consistency with
which the instrument measures the concept and helps to assess the goodness of a measure
(Sekaran, 2003).
Consistency with in the items of the questionnaire and their reliability was measured using
Cronbach Alpha. The alpha results for the items of the questionnaire and their alpha values have
met an acceptable figure in relation to the aforementioned requirement range.
Table3.1. Reliability Test for questionnaire segments
Variables Alpha Value No of Items

Working Conditions 0.929 37
Employee Performance 0.770 7
Total 0.942 44
3.7.2 Validity
Hair et al (2010) identify validity as the extent to which a measure accurately represents what it’s
supposed to. Ensuring validity requires a thorough understanding of what is to be measured and
making it as accurate and right as possible.
32
The validity of results can either be internal or external. The internal validity aspect refers to the
analysis of the findings and results obtained. The external validity refers to whether the results
and findings can be generalized. Therefore, the results are confined to the organization under
study, and that its findings are only to be generalized to the organization understudy.
3.8 Operationalization of Independent Variables
Table3.2. Operationalization of Independent Variables
Variable Definition Measurement

Occupational Health and Recognition, assessment and Work environment (ventilation, noise,
Safety (OHS) control of occupational health lighting; room/work space dimension,
and safety aspects of the work workstations; seating facilities; equipped
environment. and staffed infirmary; firefighting
equipment and ease of reach;
Working Time Period in a day/week when Daily and weekly hours of work with in
employee regularly renders legal limit , consecutive 24 hour break,
service to employer. overtime within legal limit
Wage/Income Monetary compensation paid Minimum wage, adequate pay, competitive
by employer to employee in pay
exchange for work done
Work Organization The control of work and Pace of work, assignment and tasks;
division of labor. staffing; layout of work, skill mix of
workers
Welfare Services Business commitment in the Adequate provision of amenities : eating,
expressed care for employees. washing, changing, restroom
Work Load Amount of tasks and Complete task in given time, task
responsibilities to be assignment is aligned with personal skill,
completed within time equal assignment of work
available.
Work Life Balance The way employees combine Work interference outside workplace, with
their work with their private family, support in work place in work life
33
life. balance
Violence, Harassment, and The action of abuse, threat, The absence or incidence of the act
Discrimination misuse of power intimidation
with in working scenario.
Training The management action Proper induction into job, sufficient
towards closing the gap in training, investing in employees
work performance. performance
Association and Collective The aspect of the freedom Freely join and form union, freely join and
Bargaining employees have to establish form confederations, employer require
and join groups for the workers to join union, employer perceive
purpose of getting their and handle unions issues well.
concerns in work scenario
heard.
3.9 Method of Data Analysis
When data collection process was complete and in hand, data analysis for the response and
documents reviewed was done through statistical analysis. Descriptive statistics and inferential
statistics (correlation and multiple regressions) were accounted for.
3.9.1 Descriptive Analysis
Descriptive analysis was used to provide the frequency and measurement of central tendency.
The results are presented in tabular, frequency distribution and percentage. This was possible
through the computation of means and standard deviations of data gathered for the variables.
3.9.2 Inferential statistics
Inferential statistics was used to show the relationship between the variables. Applying
inferential approach to a research is to form a data base from which to infer characteristics or
relationships of population. The basis for the interpretation of results relies on the inferential
analysis (Kothari, 1990). The inferential statistics methods that were used to interpret data are
explained as follows:
34
3.9.2.1 Pearson Correlation analysis
As stated in Kothari (1990), amongst the measures of relationship, Karl Pearson’s coefficient of
correlation is the frequently used measure in case of statistics of variables. Field (2006), states
that the output of correlation matrix can be the correlation coefficient that lies between -1 and +1
within this framework, a correlation coefficient of +1 indicates a perfect positive relationship,
and a correlation coefficient of -1 indicates a perfect negative relationship; whereas a coefficient
of 0 indicates no linear relationship at all.
3.9.2.2 Multiple Regression Analysis
Multiple regression analysis refers to the analysis concerning relationship between the dependent
and independent variables; with the multiple regressions equation describing the relationship
(Kothari, 1990).This approach was used in this study to investigate effect of work condition
factors on employee performance.
The equation of multiple regressions in this study is generally built on around two sets of
variables, namely dependent variables (employee performance) and independent variables
(working conditions). The basic objective of using regression equation in this study is to make
the researcher more effective at describing, understanding, predicting, and controlling the stated
variables.
Table3.3 Variables in regression function
Independent Variables Dependent Variable

OSH, working time, wage and income, welfare Employee performance
facilities, work organization, workload,
training, association and bargaining power;
violence, harassment and discrimination, work
life balance
35
Regressing employee performance on work condition factors
Mathematically, Yi = β1 + β2X2 + β3X3+ β4X4+ β5X5+ β6X6+ β7X7+ β8X8+ β9X9+ β10X10+
β11X11+ui
Where,
Yi= Employee Performance
OHS: Organizational Health and Safety
WT: Working Time
WI: Wage and Income
WF: Welfare Facilities
WO: Work Organization
WL: Work Load
WLB: Work Life Balance
VHD: Violence, Harassment, and Discrimination
TR: Training
ACB: Association and Collective Bargaining
β2, β3, β4, β5, β6, β7, β8, β9, β10, and β11: coefficients associated with each independent
variable which measures the change in value of Y, per unit change in their respective
independent variables
ui : model error term
36
3.10 Ethical Considerations
Throughout the process of obtaining the data, the researcher would like to put forward that she
didn’t not marginalize, demean or differentiate based on age, sex, marital status and/or religion.
Rather, the researcher made the participants understand that this study is in their best interest and
that the researcher will not put participants at risk, respect vulnerable populations, and
participants will remain confidential, if the need arose. Once the data was analyzed the
researcher kept the data for a reasonable period of time and then discarded of it so that it would
not fall into the hands of other researchers who might misappropriate it. Once more, the
researcher did not use language or words that are biased against people because of gender,
religion, racial or ethnic group, disability, or age.
37
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
Under this section of the study the background information, responses from questionnaires, and
their respective analysis are presented. In addition, Pearson Correlation and regression results are
presented and analyzed.
The total number of questionnaire distributed was 357. From these distributed questionnaires 346
were able to be retrieved and therefore analyzed for the study. These retrieved questionnaires
represent a response rate of 96.91 %.
The organization followed under this section is first presenting the background information of
the respondents and there analysis using their measures of central tendency and dispersion.
Secondly, Pearson Correlation and multiple regressions are presented. Finally, interpretations on
the results is presented
4.2 Background of Employees
Table4. Background of employees
No Item Frequency Percentage

1 Gender Male 139 40.17%
Female 207 59.83%
Total 346 100%
2 Marital Status Single 158 45.66%
Married 188 54.34%
Total 346 100%
3 Age 18-25 135 39.02%
26-30 181 52.31%
31-40 20 5.78%
41-50 8 2.31%
Above 50 2 0.58%
38
Total 346 100%
4 Educational Below 12th 34 9.83%
Level 12th 114 32.95%
Certificate 198 57.23
Total 346 100%
Source: Field survey, 2017
From the above table the number of female operational employees is more than that of the male
operational employees with in the sample, with respective values of 207 and 139. With this we
can understand that the number of women in the work premises of Ayka Addis is more than that
of the males. In terms of marital status, 158 of the employees are single and the remaining 188
are married with their respective percentage share of 45.66% and 54.34%. This infers that the
number of married employees is more than the number of single employees. When we see the
age list we can observe that 39.02% lie within the 18 up to 25 age group and 52.31% within 26
up to 30. From this it can be observed that the work force of Ayka Addis is more comprised with
young employees. Educational level of the employees showed that 9.83% of the employees had
educational level below 12th grade. 32.95% had completed 12th grade and the remaining 57.23%
were certificate holders. This shows that most of the employees are certificate holders.
4.3 Measures of Central Tendency and Dispersion
Table 5 Overall Mean and Standard Deviation
Variables N Minimum Maximum MN SD

Occupational Health and Safety 346 1 5 3.25 1.26
Working Time 346 1 5 3.42 1.31
Wage and Income 346 1 5 2.68 1.38
Welfare Facilities 346 1 5 3.62 1.24
Work Organization and Content 346 1 5 3.36 1.22
Work Load 346 1 5 3.28 1.29
Work Life Balance 346 1 5 2.97 1.31
Violence, Harassment and Discrimination 346 1 5 3.24 1.35
39
Training 346 1 5 2.89 1.32
Association and Collective Bargaining 346 1 5 3.20 1.30
Employee Performance 346 1 5 3.21 1.09
The above table illustrates the overall mean and standard deviation of the variables studied with
the sample taken. All the measurements were made on a Likert scale, and therefore implying
there wasn’t a different measure employed in assessing their values. As indicated in the table, the
mean values for occupational health and safety, working time, wage and income, welfare
facilities, work organization and content, work load, work life balance, violence, harassment and
discrimination; training, association and collective bargaining; and employee performance scores
are given at 3.25, 3.42, 2.68, 3.62, 3.36, 3.28, 2.97, 3.24, 2.89, 3.20, and 3.21 respectively. A
mean score above 3.8 is considered high, a score between 3.79 and 3.4 are moderate, where as a
score below 3.39 is considered low. In accordance with these scores, the moderate scores among
the variables are those of welfare facilities and working time with their respective scores of 3.62
and 3.42. Since a score below 3.4 is considered low, the remaining variables such as
occupational health and safety, wage and income, work organization, work load, work life
balance, violence, harassment and discrimination; training, association and collective bargaining;
and employee performance are a low score to the measure.
4.4 Pearson's Product Moment Correlation Coefficient
Pearson's Product Moment Correlation Coefficient was used in order to determine the
relationship independent variables of the study such as occupational health and safety; working
time, wage and income; welfare facilities, work organization, work load, work life balance,
violence, harassment and discrimination; training, and association and collective bargaining have
with the dependent variable employee performance.
40
Table 6. Pearson’s Correlation Coefficient
Independent Variables Employee

Performance
OHS Pearson Correlation .657
Sig. (2-tailed) .000
N 346
WT Pearson Correlation .581
N 346
WI Pearson Correlation .611
N 346
WF Pearson Correlation .522
N 346
WO Pearson Correlation .659
N 346
WL Pearson Correlation .641
N 346
WLB Pearson Correlation .626
N 346
VHD Pearson Correlation .513

N 346
TRA Pearson Correlation .550
41
N 346
ACB Pearson Correlation .637
N 346
**Correlation is significant at the 0.01 level (2-tailed).
Variables: OHS- Occupational Health and Safety, WT- Working Time, WI-Wage and Income,
WF- Welfare Facilities, WO-Work Organization, WL-Work Load, WLB- Work Life Balance,
VHD- Violence, Harassment and Discrimination; TRA-Training, ACB-Association and
Collective Bargaining
The table above represents the association the different variables of the study have with the
dependent variable, i.e. employee performance, from a sample of 346 employees of Ayka Addis.
The correlation is a commonly used measure of the size of an effect: values of ± 0.1 represent a
small effect, ± 0.3 is a medium effect and ± 0.5 is a large effect. From the data output presented
in the table, it is observed that there is a statistically significant relationship between
occupational health and safety; and employee performance (r=0.67, at 0.01 significance level), it
is thus the most correlated with employee performance among the other variables. The other
variables that have a positive significant relationship and indicate a moderate association with
employee performance are work organization, work load, association and collective bargaining;
work life balance and wage and income with their respective r values of 0.659, 0.641, 0.63,
0.626 and 0.611; and where all values of r are statistically significant at 0.01. Furthermore,
working time, welfare facilities, training and violence, harassment and discrimination have a
positive statistically significant relationship with employee performance with their respective r
values of 0.581, 0.552, 0.550, and 0.513 which were significant at 0.01 significance level.
4.5 Anova Test
Table 7 Anova Test
ANOVAA
Model Sum of Squares df Mean Square F Sig.
42
Regression 6181.736 10 618.174 93.908 .000B
Residual 2205.235 336 6.583
Total 8386.971 346
A. Dependent Variable: EP
B. Predictors: (Constant), ACB, WT, WF, VHD, WL, WI, WLB, TRA, WO, OSH
The ANOVA table tests the acceptability of the model from statistical perspective. The
regression row displays information about the variation accounted for by the model. The residual
row displays information about the variation that is not accounted for by the model. The
significance value of the F statistics is less than 0.05, this means that the variation explained by
the model is not due to chance. Therefore, the significance level of the F value determines the
goodness of fit of the model and that can conclude that the model is significant at 99% and we
can accept the model.
4.6 Multiple Regressions
A multiple linear regression analysis was carried out to identify the variations caused in
employee’s performance by the independent variables of the study. It showed that a variation in
employee’s performance in terms of quantity, quality, timeliness, cost effectiveness,
absenteeism, creativity, and adherence to policy was explained by the independent variables
incorporated by the study.
43
Table 8 Multiple Regression
R R Square Adjusted R Standard Sig.

Square Error of the
Estimate
.859a .737 .729 2.56569 .000
Model Unstandardized Standardized t Sig.
coefficients coefficients
Variables β St. β
error
Constant 2.512 .727 3.454 .001
OSH .132 .045 .122 2.946 .003
WT .145 .050 .110 2.897 .004
WI .168 .053 .124 3.177 .002
WF .185 .046 .137 4.047 .000
WO .197 .046 .172 4.324 .000
WL .237 .062 .145 3.810 .000
WLB .200 .064 .119 3.114 .002
VHD .082 .053 .055 1.547 .123
TRA .030 .065 .018 .454 .650
ACB .254 .047 .198 5.351 .000
Source: Field Survey, 2017
Predictors: (Constant),OHS- Occupational Health and Safety, WT- Working Time, WI-Wage
and Income, WF- Welfare Facilities, WO-Work Organization, WL-Work Load, WLB- Work
Life Balance, VHD- Violence, Harassment and Discrimination; TRA-Training, ACB-
Association and Collective Bargaining.
From the above table , it can be deduced that the observed value of performance and the optimal
linear combination of the independent variables, namely occupational health and safety; working
time, wage and income; welfare facilities, work organization; work load, work life balance,
violence, harassment and discrimination; training, and association and collective bargaining; is
44
0.859 as induced by the multiple R. Furthermore, with the values of R Square value of 0.737 and
Adjusted R square value of 0.729, it can be deduced that 72.9% of employee performance
variations measured in terms of quantity, quality, timeliness, cost effectiveness, absenteeism,
creativity, and adherence to policy, can be explained by the independent variables. The
remaining value of 27.1% is explained by other variables not included in this study.
The unstandardized coefficients β column, gives us the coefficients of the independent variables
in the regression equation including all the predictor variables as indicated above. In addition, the
table above also shows that the explanatory variables included in this study can significantly
explain at 95% confidence level to the variation on the dependent variable. The standardized beta
coefficient column shows the contribution that an individual variable makes to the model. The
beta weight is the average amount the dependent variable increases when the independent
variable increases by one standard deviation (all other independent variables are held constant).
Since these results are standardized, we can make comparisons among them. Among the
variables, the one with the largest value of influence is ACB (Association and Collective
Bargaining) with a 0.198 value. The second most influential is WO (Work Organization) with a
value of 0.172. The bottom two variables with the least form of influence are VHD (Violence,
Harassment and Discrimination) and TRA (Training) with values of 0.055 and 0.018
respectively.
4.7 Hypothesis Summary
Occupational Health and Safety (OHS): the occupational health and safety in the organization
was found to be statistically significant at 5 % significance level and showed a positive
relationship with the performance of the employees. For a 0.122 increase in occupational health
and safety, employee performance will increase by 1 unit, keeping other things constant.
Therefore, the better the organizations improves occupational health and safety issues the better
the performance of the employees will be. This justifies the works of Katsuro et.al. (2010),
where it states that the more organizations better their safety and health aspects the more
employee performance increases. Thus, the study failed to reject the null hypothesis by stating
that there is positive and significant relationship between OSH and employee performance.
45
Working Time (WT): the working time of the organization was found to be statistically
significant at 5% significance level and resembled a positive relationship with performance of
employees. This is in accordance with the studies of Ali et al (2013) who states that work hours
have positive correlation with employees’ performance and that it is certainly a factor of working
condition that affects employees’ performance. For a 0.110 increase in working time, employee
performance will increase by 1 unit, keeping other factors constant. Therefore, when the
organization assures that working time is not excessive, employees get adequate rest, the right
amount of annual leave and limited hours of overtime, employee performance is deemed to
improve. Thus, the study failed to reject the null hypothesis by stating that there is a positive and
significant relationship between working time and employee performance
Wage and Income (WI): wage and income was found to be statistically significant at 5%
significance level and showed a positive relationship with performance of the employees’. For a
0.124 increase in wage and income, employee performance increases by 1 unit, keeping other
factors constant. Factory managers can elicit work effort directed at quality and quantity by
paying an efficiency wage or by altering the conditions of work (Robertson et.al,
2016).Therefore, if wages and income are sufficient enough, stand competitive among the
industries wages and are in accordance with the efforts and performance of the employees, the
employee performance is likely to increase. Thus, the study failed to reject the null hypothesis by
stating that there is a positive and significant relationship between wage and income; and
employee performance.
Welfare Facilities (WF): welfare facility was found to be statistically significant at 5%

significance level and showed a positive relationship with performance of the employees’. For a
0.137 increase in welfare facilities, employee performance increases by 1 unit, keeping other
factors constant. Therefore, if employers provide the required amount of dining places, adequate
drinking water, adequate restrooms, and enough changing rooms, employee performance will
increase. Thus, the study failed to reject the null hypothesis by stating that there is a positive and
significant relationship between welfare facilities and employee performance.
Work Organization (WO): work organization and content was found to be statistically
significant at 5% significance level and showed a positive relationship with performance of the
employees. For a 0.172 increase in work organization, employee performance increases by 1
46
unit, keeping other factors constant. Therefore, when assignments of work, skill mix of other
employees, enough number of employees, work layout and pace of work are improved, the
performance of employees will increase. Thus, the study failed to reject the null hypothesis by
stating that there is a positive and significant relationship between work organization; and
employee performance.
Work Load (WL): work load was found to be statistically significant at 5% significance level
and showed a positive relationship with performance. This result contradicts with the statements
of Ali et al (2013), who states that work load is negatively related with performance of
employee. Thus the study rejects the null hypothesis that states there is a negative and significant
relationship with performance.
Work Life Balance (WLB): work life balance was found to be statistically significant at 5%
significance level and showed a positive a positive relationship with performance of the
employees. For a 0.119 increase in work life balance, employee performance increases by 1 unit,
keeping other factors constant. Therefore, when support to balance employees’ work and
personal life; less interference of work with their personal life; and supervisors’ understanding
for critical matters of employees is improved, employee performance is likely to increase. Thus,
the study failed to reject the null hypothesis by stating that there is a positive and significant
relationship between work life balance and employee performance.
Violence, Harassment and Discrimination (VHD): violence, harassment and discrimination in

the work place were found to have a value of 0.123, which shows an insignificant value. Thus,
the study rejects the null hypothesis that states violence, harassment, and discrimination has a
significant and negative relationship with employee performance.
47
Training (TRA): training in the organization had a value of 0.650, which shows an insignificant
value. Thus, the study rejects the null hypothesis that states training has a significant and positive
relationship with employee performance.
Association and Collective Bargaining (ACB): Association and collective bargaining was
found to be statistically significant at 5% significance level and had a positive relationship with
employee performance. For a 0.198 increase in association and collective bargaining employee
performance increases by 1 unit, keeping other factors constant. Therefore, when employees
freely join union, employer shows good perception to the issues of the union are improved,
employee performance is likely to increase as well.
48
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATOINS
5.1 Summary
The study was undertaken to assess the effect of working condition factors on employee
performance. With this intent, the study reviewed literature and assessed for working condition
factors that affect employee’s performance. The study investigated the employees of Ayka Addis
Textile and Investment Group PLC, and mainly focused on the operational level employees who
are associated with the activity of production for the main products of the factory. The study
analyzed 346 questionnaires in finding its observation. The measure of employee performance
was based on quantity, quality, timeliness, cost effectiveness, creativity, absences and adherence
to policy, while working conditions covered occupational health and safety, working time, wage
and income, welfare facilities, work organization, work load, work life balance, violence,
harassment and discrimination; training, association and collective bargaining. A regression
analysis was employed in analyzing the effect of working conditions (independent variable) on
employee performance (dependent). The result showed that all the variables had a positive and
relationship with employee performance. With the exception of variables violence, harassment
and discrimination; and training, all were statistically significant. In addition, measures of central
tendency and dispersion were used to understand the scores of each variable and it was observed
that with the exception of welfare facilities and working time, which deemed to be moderate, the
remaining variables resulted in low scores.
5.2 Conclusion
It can be deduced from the study that the independent variables in the study, with the exception
of working time and welfare services, were low in their overall aspects and therefore the
dependent variable, employee performance, showed a low score as well too. All the variables
showed moderate correlation with employee performance with values ranging between 0.5 up to
0.7. Furthermore, among the variables, the top three which had the largest values of influence
were association and collective bargaining; work organization and work load. The bottom two
variables with the least form of influence were violence, harassment and discrimination; and
training. In addition these least influencing variables were also found to be insignificant.
49
5.3 Recommendation
In achieving and succeeding in better performance, organizations should adhere to the better
conditions of work their employees face. Thus, working conditions pertaining in the working
environment for employees are vital for productivity growth and performance of the
organization. In this study, conducted on Ayka Addis Textile and Investment Group PLC, almost
all of the factors of work conditions were found to be low and that employee performance itself
was affected by these circumstances. Therefore, this section recommends the improvements to be
made with the work premises the employees carry out their tasks and duties in.
Occupational Health and Safety: the organization currently makes a satisfactory level of
available and staffed infirmary with its equipment and firefighting facilities easy reach to
workers. In order to change the satisfactory level into an excellent level, the organization should
add other required items to the infirmary and make sure that firefighting facilities are available at
every floor within easy reach to employees. Work station and seating facilities comfort and
safety should be free from materials causing discomfort and holding the employee at a safety
risk. Work environment (in terms of lighting, noise level, temperature and ventilation) should be
made sure that they stay at an acceptable level so as employees don’t get distracted or bothered
by them on their job. Lastly, more regular checks on health and safety issues by the organization
should be done on environmental surroundings of the work premises and facilities, so as to
ensure their employees work in safe and comfortable surroundings.
Work Time: to change the conditions of sufficient annual leave with pay and regular hours
being within the legal limit from satisfactory level to an improved level, organization should
ensure always that employees work with in the regular hours of work and that all employees
receive appropriate annual leaves. Furthermore, the organization should make sure that
employees get enough rest per week and that the hours of overtime don’t exceed 2 hours and that
the employees receive a better compensation for the overtime work they have worked.
Wage and Income: the organization should make review of the wages and incomes employees
currently receive and make improvements in that their income is in accordance with their efforts,
competitive with similar industries and that the minimum wage requirement is met.
50
Welfare Facilities: the current state of providing safe drinking water and having adequate and
accessible toilets and hand washing facilities to employees is very good. The organization should
increase the availability of changing rooms for employees to use for changing their work wear to
regular clothes. Availability of dining areas is satisfactory, but in order to be excellent,
organization should make more areas for dining
Work organization: the assignments and tasks of work being clear and pace of work were
satisfactory. To transform this into an admirable level, managers and supervisors should make
job orders simple and clear enough to be an easily carried out task and check for hindrances in
the line of work that slow down the pace of work and solve them. Furthermore, it is
recommended to make the different employees’ skills mix well with the required job, ensure that
numbers of people working on task are enough and plan the layout of work in a way that can
facilitate coordination and team work.
Work load: to make sure that employees don’t get burdened with over load of task, it is
important to match employees skills with the work assigned, and that it can be finished within
the time provided. Furthermore, it is important to ascertain that tasks are distributed equally to
every employee so that workers don’t stress on work handed to them.
Work Life Balance: the organization should show efforts in the willingness of assisting
employees in balancing their daily work and family roles. This can be done by making sure
employees feel at ease juggling their personal life and their work roles. In addition, supervisors
should give considerations to critical matters employees might encounter in their personal lifes.
Violence, Harassment, and Discrimination: management and people in supervisory roles

should help prevent the deeds of violence, harassment and discrimination, and let it be known to
all that no action of such kind is tolerated.
Training: in order to increase the skills of employees and show dedication to their work,
management should provide trainings of work in relation to skill and held them frequently. In
addition, the organization should make trainings on work ethic to employees in order to increase
commitment.
51
Association and bargaining power: the organization should require employees to join trade
unions and should make more effort in perceiving and handling union’s questions and efforts in
bargaining and resolving work related issues well, so as to make discussions with these trade
unions on ways to improve their negative perceptions they encounter.
5.4 Direction for Further studies
This study was conducted to assess the effects of working conditions on the performance of
employees. The study was conducted on operational employees of Ayka Addis Textile and
Investment Group PLC and was within the characters of the organization. Therefore, the
researcher suggests that other researchers make assessment on other organizations and sectors of
the economy. Furthermore, comparative analysis in working conditions among the different
sectors of the economy is suggested by the researcher.
52
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Appendix
57
College of Business and Economics
MBA Program
Dear respondents: This questionnaire is prepared for a research study purpose entitled “Effect
of working conditions on employee’s performance”. The expected respondents for this
questionnaire will be Operational Employees of Ayka Addis. The researcher asks respondents
to give sincere and accurate data to make proper analysis of. The researcher would like to note
that data will be kept confidential and will only be used for study purpose. I would like to
thank you in advance for your honest cooperation.
Put an “X” on your choice of agreement.
Section one: Demographic Information
1. Gender: Male _____ Female _____
2. Age 18-25 _________ 26-30_________ 31-40_________ 41-50 _________
Above51_________
3. Marital Status: Married_____ Single_____
4. What is the highest level of education you have completed?
Under grade 12th _________ Grade 12th_____ Certificate_____
The table that follows in the next section consist list of items, Please put “X” mark for every
statement based on your level of agreement.
5: Strongly agree
4: Agree
3: Neutral
2: Disagree
1: Strongly Disagree
58
Description of Items 5 4 3 2 1
No 1. Occupational Safety and Health issues
1.1 Working environment such as lighting, noise
level, temperature and ventilation are acceptable
1.2 Workplace has adequate fire-fighting equipment
and within easy reach of workers
1.3 Work station and seating facility are comfortable
to work in
1.4 Workplace has an adequately equipped and
staffed infirmary
1.5 Health and safety regular checks are made by the
organization
2. Working Hours/Time
2.1 Regular daily or weekly working hours are
always within the legal limit
2.2. Employer gives workers at least 24 consecutive
hours off per week
2.3 I am granted an annual pay leave for my work
2.4 My overtime work is two hours or less and well
compensated of
3. Wages and Income
3.1 Employer pays workers at least minimum wage
for ordinary hours of work
3.2 Considering all my efforts and achievements in
my job, I feel I get paid appropriately
3.3 I feel I am adequately paid compared to similar
employees within the industry
4. Welfare Facilities
4.1 Workplace has adequate accessible toilets and
hand washing facilities
4.2 Employer provides workers enough free safe
drinking water
4.3 Workplace has adequate changing rooms
4.4 Workplace has adequate space for dining and
rest areas
5. Work Organization and Job Content
5.1 Assignments and tasks of work are clear
5.2 Skill mix of other workers on the job is
sufficient
59
5.3 Number of people performing a job is adequate
5.4 Layout of work is well planned
5.5 Pace of work ( in assembly line) is satisfactory
6. Workload
6.1 Workload can be finished in given time
6.2 Work is well matched with my personal skills
6.3 Workload is evenly distributed so it does not pile
up
7. Work Life balance
7.1 Support exists at work to balance my work and
personal life
7.2 Work doesn’t interfere with my time for family
and friends
7.3 My supervisor would let me leave work early if I
needed to address critical personal matters
8. Violence, Harassment and
Discrimination
8.1 Violence(verbal abuse, emotional threat,
physical attack, misuse of power) doesn’t
prevail in work place
8.2 Sexual Harassment in work place doesn’t prevail
in work place
8.3 Discrimination ( based on gender, age, religion,
ethnicity) doesn’t prevail in workplace
9. Training
9.1 I get sufficient training for my job
9.2 I have received proper induction into my job
9.3 Company invests in employees through training
of work ethics and commitment
10. Freedom of Association and Collective

Bargaining
10.1 Workers can freely join and form a union
10.2 Unions can freely form and join federations and
confederations of their choice
10.3 Employer requires workers to join a union
10.4 Employer perceives and handles unions
questions and efforts in bargaining and resolving
work related issues well
60
Performance
11.1 I meet the target quantity required by the
organization
11.2 I produce products that are free from defects
11.3 I take the appropriate amount of time to
complete my tasks
11.4 I produce good results with low cost to the
organization
11.5 I am present on work on a regular basis
11.6 I generate ideas and better ways of doing
work
11.7 My work goals are well aligned with that of
the company’s
61
አዲስ አበባ ዩኒቨርሲቲ
የድረ ምረቃ ትምህርት ቤት
የቢዝነስ አስተዳደር ትምህርት ክፍል
የሠራተኞች የስራ ሁኔታ በስራ ችሎታቸው ላይ ያለውን ተጽእኖ ለማጥናት ያዘጋጀሁትን መጠይቅ
ለመሙላት ለሚተባበሩኝ የ አይካ አዲስ ተቀጣሪዎችን በቅድምያ ምስጋናየን እያቀረኩ ከዚህ በታች ባለው
እና ቀጥሎ ባሉት ግጾች የተቀመጡት ጥያቄዎች ስለስራ ሁኔታ ያላችሁን አመለካከት በመስማማት እና
ባለመስማማት የምትገልፁት ነው ስለዚህም ያልዎትን ሃሳብ በቀኝ በኩል በተቀመጡት ሳጥኖች የራይት
ምልክት(√) በማስቀመጥ እንዲገልፁ በትህትና እጠይቃለሁ።
የግል መረጃ (የምላሽ ሰጭዎች መረጃ) በተመለከተ
1. ፆታ ወንድ_________ ሴት_________
2. ዕድሜ 18-25 _________ 26-30_________ 31-40_________ 41-50 _________ ከ 51 በላይ _________
3. የጋብቻ ሁኔታ ያላገባ_________ ያገባ_________
4. የትምህርት ደረጃ ከ12 በታች _________ ሰርተፊኬት _________
5=እጅግ እስማማለሁ
4=እስማማለሁ
3=ገለልተኛ ነኝ
2=አልስማማም
1=እጅግ አልስማማም
5 4 3 2 1
የስራ ጥንቃቄ እና ጤንነት
1 የመስሪያ አካባቢ አንደ ብርሃን የድምፅ መጠን የሙቀት መጠን
እንዲሁም የኣየር ማናፈሻዎች ተስማሚ ናቸው
2 የስራ ቦታ በቂ የሆነ የእሳት መከላከያና ማጥፊያ ቁሳቁሶችን ያሟላ
እንዲሁም ለሠራተኞች በቀላሉ መደረስ የሚችል ነው
3 መስሪያ ቦታ እና መቀመጫ ስራ ለመስራት ምቹ ናቸው
4 የስራ ቦታ በቂ የሆነ መለስተኛ ክሊኒክ አለው
5 ድርጅቱ የጤና እና የጥንቃቄ ጉዳዮችን ይከታተላል
የስራ ሰኣት
6 መደበኛ የዕለታዊ ወይም ሳምንታዊ የስራ ሰኣት ከህጋዊው ስርኣት
ኣያልፍም
7 ኣሰሪ ለሰራትኞ የተከታታይ 24 ሰኣታት እረፍት በሳምንት ዉስጥ
ይሰጣል
8 ክፍያ ያለው አመታዊ እረፍት ይሰጠኛል
62
9 ከስራ ሰአት በላይ የሚሰራ ስራ ከሁለት ሰአት በላይ ያላለፈ
እንዲሁም በቂ ክፍያ ያለው ነው
ደሞዝ እና ገቢ
10 አሰሪ ሠራተኞችን ቢያንስ አስፈላጊ ደሞዝ ለመደብኛ ስራ ይከፍላል
11 የስራ ክንውኔን ድካሜን እና ጥረቴን ያገናዘበ ተገቢ ክፍያ አገኛለሁ
12 ከሌሎች ተመሳሳይ የልብስ ስፌት ድርጅቶች ሠራተኞች ሲንነፃፅር
በቂ እና ተመጣጣኝ ይከፈለኛል ብዬ አስባለሁ
የደህንነት አመችቻች አቅርቦት
13 የስራ ቦታ በቂ እና በቀላሉ የሚደረስ መፅዳጃና የእጅ መታጠቢያ
ቦታዎች አሉት
14 ስራ ቦታ በቂ የሆነ የንፁህ ውሃ መጠጫ አቅራቦት አለው
15 የስራ ቦታ በቂ የሆነ ይመቀየርያ ክፍሎች አሉት
16 የስራ ቦታ በቂ የሆነ የመመገቢያ እና የማረፍያ ቦታ አለው
የስራ አደረጃጀት እና ይዘት
17 የሚሠጠኝ ስራ እና የሚጠየቅብኝ ክንውን ግልፅ ነው
18 የሌሎች ሠራተኞች የችሎታ ድምር ለስራ መፈፀሚያ በቂ ነው
19 ስራ ለመፈፀም ያለው የሰው ሃይል ብዛት በቂ ነው
20 የስራ አቀማመጥ እና አደረጃጀት በተገቢው የታሰበ ነው
21 በመስመር ላይ የስራ አፈፃፀም ፍጥነት በቂ ነው
የስራ ጫና
22 የሚሰጠኝ የስራ ጫና በተሰጠው ሰኣት እና ጊዜ መፈፀም የሚችል
ነው
23 የሚሰጠኝ ስራ ከግል ችሎታዬ ጋር የተመጣጠነ ነው
24 ስራ እንዳይከመር የስራ ጫና እኩል የተከፋፈለ ነው
የስራና የኑሮ ሚዛን
25 በስራ ቦታ የግል ኑሮዬን እና ስራዬን ሚዛን ለመጠበቅ ድጋፍ አለ
26 ስራዬ ከቤተሰብ እና ከጓደኞቼ ጋር ባለኝ ጊዜ ጣልቃ ይገባል
27 አሳሳቢ የግል ጉዳይ ቢያጋጥምኝ የበላይ ተቆጣጣሪዬ ከስራዬ በግዜ
እንድሄድ ይፈቅድልኛል
ሃይል፣ ጥቃት እና መለያየት
28 ሃይል እንደ የቃል ስድብ ፣ ስሜትን የሚነካ ቁጣ፣አካላዊ
ጥቃት፣ያለአግባብ ስልጣንን መጠቀም በስራ ቦታ ላይ
አይስተዋልም
29 ፆታዊ ጥቃት በስራ ላይ አይስተዋልም
30 አድሎ ( በፆታ፣በዕድሜ፣ በሃይማኖት) በስራ ቦታ አይስትዋልም
ስልጠና
31 ለስራዬ የሚረዳኝ በቂ የሆነ ስልጠና አገኛለሁ
32 ለስራዬ ተገቢ የሆነ ስርፀት አግኝቻለሁ
63
33 ድርጅቱ ለሠራተኞች በስልጠና መልክ ገንዘብ ያውላል
የሠራተኞች ማህበር እና ድርድር
34 ሠራተኞች በነፃነት ማህበር መመስረትና መቀላቀል ይችላሉ
35 የሠራተኞች ማህበር ከሌሎች ማህበራት ጋር ተደራጅቶ መቋቋም
እና መቀላቀል ይችላሉ
36 አሠሪ በማህበሩ የሚነሱ ከስራ ጋር ተያያዢነት ያላቸው
የመደራደርያና የአወሳሰን ጉዳዮችን በጥሩ ሁኔታ የሚገነዘብ እና
የሚያስተናግድ ነው
37 ድርጅቱ ሠራተኞች ማህበር እንዲቀላቀሉ ይፈልጋል
የስራ አፈፃፅም
38 በድርጅቱ የሚወሰነው የምርት ግብ አሟላለሁ
39 ከእርማት ነፃ የሆኑ ምርቶችን አመርታለሁ
40 የተሰጠኝን ስራ በተገቢው ሰአት እጨርሳለሁ
41 ድርጅቱን ቢዙ ወጪ ሳላስወጣ ጥሩ ውጤት አሳያለሁ
42 በስራ ገበታዬ ላይ ሁልጊዜ እገኛለሁ
43 ስራን በተሻል ሁኔታ ለመስራት ሃሳቦችን አቀርባለሁ
44 የግል አላማዬ ከድርጅቱ አላማ ጋር የተቆራኘ ነው
64
Correlations
OSH WT WI WF WO WL WLB VHD TRA ACB EP
** ** ** ** ** ** ** ** ** **
OSH Pearson Correlation 1 .603 .557 .419 .491 .479 .526 .416 .467 .471 .657
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
WT Pearson Correlation .603 1 .444 .330 .477 .440 .415 .424 .287 .366 .581
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
WI Pearson Correlation .557 .444 1 .242 .422 .482 .523 .408 .552 .500 .611
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
WF Pearson Correlation .419 .330 .242 1 .449 .383 .364 .228 .208 .378 .522
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
WO Pearson Correlation .491 .477 .422 .449 1 .588 .452 .443 .505 .441 .659
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
WL Pearson Correlation .479 .440 .482 .383 .588 1 .501 .405 .461 .429 .641
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
WLB Pearson Correlation .526 .415 .523 .364 .452 .501 1 .490 .493 .481 .626
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
VHD Pearson Correlation .416 .424 .408 .228 .443 .405 .490 1 .480 .386 .513
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
TRA Pearson Correlation .467 .287 .552 .208 .505 .461 .493 .480 1 .541 .550
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
ACB Pearson Correlation .471 .366 .500 .378 .441 .429 .481 .386 .541 1 .637
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
** ** ** ** ** ** ** ** ** **
EP Pearson Correlation .657 .581 .611 .522 .659 .641 .626 .513 .550 .637 1
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
N 346 346 346 346 346 346 346 346 346 346 346
**. Correlation is significant at the 0.01 level (2-tailed).
65
Regression
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .859 .737 .729 2.56569
a. Predictors: (Constant), ACB, WT, WF, VHD, WL, WI, WLB, TRA,
WO, OSH
ANOVAa
Model Sum of Squares df Mean Square F Sig.
b
1 Regression 6181.736 10 618.174 93.908 .000
Residual 2205.235 336 6.583
Total 8386.971 346
a. Dependent Variable: EP
b. Predictors: (Constant), ACB, WT, WF, VHD, WL, WI, WLB, TRA, WO, OSH
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.512 .727 3.454 .001
OSH .132 .045 .122 2.946 .003
WT .145 .050 .110 2.897 .004
WI .168 .053 .124 3.177 .002
WF .185 .046 .137 4.047 .000
WO .197 .046 .172 4.324 .000
WL .237 .062 .145 3.810 .000
WLB .200 .064 .119 3.114 .002
VHD .082 .053 .055 1.547 .123
TRA .030 .065 .018 .454 .650
ACB .254 .047 .198 5.351 .000
a. Dependent Variable: EP
66

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Addis Ababa University

College of Business and Economics

Effect of Working Conditions on Employee Performance in Ayka Addis

Ato Teshome Bekele

A Thesis submitted to the school of graduate studies of Addis Ababa

Addis Ababa, Ethiopia

Advisor: Ato Teshome Bekele

Signed by the Examining Committee:

Key Words: Working Condition, Employee Performance, Productivity, Work Environment

Figure 2.1 Conceptual Framework…………………………………………………………… 19

Table 3.1 Reliability Test for questionnaire segments ………………………………….……. 22

Table 3.2 Operationalization of Independent Variables ……………………………………… 23

Table 3.3 Variables in regression function………………………..……………………….….. 25

Table 4.4 Background of employees …………………………..……………………………… 28

Table 4.5 Overall Mean and Standard Deviation ……………………………………………… 29

Table 4.6 Pearson’s Correlation Coefficient ………………………………………………….... 31

Table 4.7 Anova Test ……………….………………………………………………………….. 33

Table 4.8 Multiple Regression …………………………………………………………….…… 34

ADLI- Agricultural Development Led Industrialization

AFL-CIO- American Federation of Labor and Congress of Industrial Organizations

HSE- Health and Safety Executive

ILO- International Labor Organization

MoI- Ministry of Industry

SD- Standard Deviation

SPSS- Statistical Package for the Social Sciences

TCLF-Textile, Clothing, Leather and Footwear

WDR- World Development Report

1.1 Background of the Study

The Ethiopian government is renowned for drafting “Agricultural Development- Led

1.2 Statement of the Problem

1.3 Research Objective

 To identify the relationship existing between working condition and employee

1.5 Significance of the study

1.6 Scope of the Study

1.7 Limitation of Study

Review of Related Literature

2.2 Working Condition

2.2.1 Concept of Working Condition

2.2.3 Factors of Work Conditions

2.2.3.3 Wages and Income

2.2.3.4 Work Organization

2.2.3.6 Work Load

2.2.3.7 Work life balance

2.2.3.8 Harassment, Violence, and Discrimination at workplace

2.2.3.10 Association and collective bargaining

2.3 Employee Performance

2.3.1 Measuring Employee Performance

Absenteeism/Tardiness: refers to the unscheduled absences from the workplace.

Creativity: refers to mental process of generating ideas or alternative options of procedures in

2.4 Empirical Review

OCCUPATIONAL ASSOCIATION AND

3.2 Research Design

3.3 Research Approach

3.4 Population, Sample size and Sampling Technique

Source: Watson, 2001

n: sample size required- 357

N: number of people in the population-5234

P: estimated variance in population - 50%

1. Gender: Male _ Female _

2. Age 18-25 _____ 26-30_ 31-40_ 41-50 _____

3. Marital Status: Married_ Single_

Under grade 12th _______ Grade 12th_ Certificate___